Card Protection Plan (CPP) rip-off: a warning!

YorkshireBoy

magpiecottage wrote: »

If you paid by direct debit you can cancel the DD.

The OP did just that.

If CPP has debited a card without authority then tell the credit card provider it is an unauthorised payment and you want your money back.

OP gave them authority to do so when (s)he agreed to CPP's T&Cs (as varied and notified over the years since 2001)...

We will collect the payment from the card or account that the main policyholder has identified as the paycard or paying account. Following a loss report, or if a payment is rejected from your paycard, payments will be collected from any other card you have registered on your policy.

I note OP hasn't answered izools' question..."Had you actually called CPP to cancel the service, prior to their taking payment?"

Kavafy

YorkshireBoy wrote: »

I note OP hasn't answered izools' question..."Had you actually called CPP to cancel the service, prior to their taking payment?"

See the second bullet of my original post.

Buzzman_2

Interesting, I use CPP and they have always provided a pretty good service - but I do agree, even if it is in the T&Cs that they can debit a card that's on file for protection (not specifically for debiting for use of their service) it is morally dubious to say the least! Employing tactics like that to debit customers really isn't great publicity for their business

rickbonar - thanks for the tip that Martin Lewis has a free scheme to protect cards - I will look into it

magpiecottage

Looking at this again, I do see some fault on the part of the OP.

They say that the money was taken from a card that had been cancelled. However, if it had been cancelled, why did CPP still have details? It sounds as though the OP did not tell them. Not only is that not the fault of CPP but they have been insuring OP against the loss of this non-existent card for some years.

Does the OP also have evidence that they wrote and cancelled the card? If CPP did not receive this then they would be in a difficult position when the DD bounced. If cover was discontinued and the policyholder subsequently lost the cards they could receive a complaint that cover had been allowed to lapse when they had the card details to take the premium.

pqrdef

Insurance companies must get a lot of claims from people whose policies have expired recently. Some of those people will have decided not to renew, and will now be trying it on. Others will truthfully say they were in hospital / didn't get the renewal letter / etc. If they've got a good enough sob story they may get on Watchdog.

Auto-renewal is becoming a popular answer, but if the payment fails, the problem comes straight back, since the company has no idea whether the failure is deliberate or accidental.

However, what I want to know is, how do they do a cardholder-not-present transaction without the CVV number?

YorkshireBoy

pqrdef wrote: »

However, what I want to know is, how do they do a cardholder-not-present transaction without the CVV number?

I always thought it was necessary, but I recently booked car hire with Holiday Autos over the phone and they didn't ask for the CVV number.

YorkshireBoy

magpiecottage wrote: »

Looking at this again, I do see some fault on the part of the OP.

With the rest being attributed to Royal Mail?

Setting aside the 'morals', I can't see CPP are at fault here. They simply did what they said they'd do in the T&Cs.

YorkshireBoy

Kavafy wrote: »

See the second bullet of my original post.

So the answer to the question is no then, you didn't inform them you didn't want to renew.

poppasmurf_bewdley

If you've paid for Credit Card Protection with CPP, can't you claim what you've lost back through them? Or am I missing something?

rcf100

OK so he didn't cancel, and OK so he didn't read the T&C's, but do you know what, I would have done the same. Assumed that because I'd cancelled DD and not renewed that my contract was cancelled.

Yes I'd technically be in the wrong, but it's not practice that most reasonable people would expect, to take money from protected cards, and there are plently of people who don't read the T&C's.

I for one am happy that the OP poster has posted this so I do not make the same mistake. They have barely posted on this site and I can't imagine they'll be back with that sort of welcome.

I think it's a rip off and I thank you for the warning. There prob is nothing you can do but warn others and that is what you have done.